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ECB Working Paper Warns Dollar Stablecoins Threaten Eurozone Banks as Eco CMO Backs Hybrid Future
In March 2026, the European Central Bank released a working paper arguing that growing stablecoin use is linked to bank deposit outflows, weaker credit provision and reduced effectiveness of eurozone monetary policy. Eco CMO Jay Kurahashi-Sofue told 99Bitcoins that stablecoins and banks are likely to coexist in a hybrid financial system, and said governments that engage with the technology could use it to reinforce rather than undermine monetary sovereignty.